1999 Legislation
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SENATE BILL NO. 1031 – Vessels, titling

SENATE BILL NO. 1031

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S1031.....................................................by TRANSPORTATION
VESSELS - TITLES - Amends and adds to existing law to provide for the
titling of vessels; to provide authority to the Idaho Transportation
Department to administer the titling of vessels; to provide procedures; to
require licensing of certain persons; to require vessel dealers to procure
and file a bond; to provide application to certain vessels; and to provide
for treatment of liens and encumbrances of vessels.

01/22    Senate intro - 1st rdg - to printing
01/25    Rpt prt - to Transp
02/17    Rpt out - rec d/p - to 2nd rdg
02/18    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 27-4-4
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Crow, Danielson,
      Deide, Dunklin, Frasure, Geddes, Ingram, Ipsen, Keough, Lee,
      McLaughlin, Noh, Richardson, Riggs, Risch, Sandy, Schroeder,
      Sorensen, Stegner, Stennett, Twiggs, Wheeler, Whitworth
      NAYS--Cameron, Darrington, Hawkins, King
      Absent and excused--Branch, Davis, Parry, Thorne
    Floor Sponsor - Frasure
    Title apvd - hld for reconsideration
02/24    To 14th Ord
03/04    Rpt out w/o amen - to 3rd rdg
03/09    3rd rdg - PASSED - 29-1-5
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Crow,
      Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Ingram, Keough, Lee, McLaughlin, Noh, Richardson, Riggs, Risch,
      Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler,
      Whitworth
      NAYS--Hawkins
      Absent and excused--Cameron, Ipsen, King, Parry, Twiggs
    Floor Sponsor - Frasure
    Title apvd - to House
03/10    House intro - 1st rdg - to Transp
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
03/19    3rd rdg - PASSED - 38-21-11
      AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Campbell,
      Clark, Crow, Cuddy, Deal, Denney, Field(13), Field(20), Gagner,
      Hadley, Hansen(29), Henbest, Jones, Judd, Kellogg, Kempton, Kunz,
      Lake, Linford, Marley, Meyer(Duncan), Montgomery, Mortensen, Pomeroy,
      Reynolds, Ringo, Robison, Smith, Stevenson, Stone, Tippets, Trail
      NAYS -- Alltus, Barrett, Callister, Chase, Ellsworth, Hammond,
      Hornbeck, Jaquet, Kendell, Loertscher, Mader, McKague, Moyle,
      Ridinger, Sali, Schaefer, Smylie, Stoicheff, Taylor, Watson, Wood
      Absent and excused -- Geddes, Gould, Hansen(23), Limbaugh, Pischner,
      Sellman, Tilman, Wheeler, Williams, Zimmermann, Mr Speaker
    Floor Sponsor - Kellogg
    Title apvd - to Senate - to enrol
03/22    Rpt enrol - Pres signed - Sp signed
03/23    To Governor
03/24    Governor signed
         Session Law Chapter 298
         Effective: 01/01/2000

Bill Text


S1031


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1031

                               BY TRANSPORTATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO VESSELS; AMENDING SECTION 49-123, IDAHO CODE, TO PROVIDE A  REFER-
 3        ENCE  TO  THE  DEFINITION  OF  "VESSEL" AND TO MAKE TECHNICAL CORRECTIONS;
 4        AMENDING CHAPTER 5, TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
 5        49-501A, IDAHO CODE, TO PROVIDE APPLICATION TO  VESSEL  TITLING;  AMENDING
 6        CHAPTER  70,  TITLE  67,  IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION
 7        67-7039, IDAHO CODE, TO ESTABLISH  THE  VESSEL  TITLING  ACT,  TO  PROVIDE
 8        AUTHORITY  TO THE IDAHO TRANSPORTATION DEPARTMENT TO ADMINISTER THE PROVI-
 9        SIONS OF THE ACT, TO PROVIDE FOR TITLING PROCEDURES, TO REQUIRE  LICENSING
10        OF  CERTAIN  PERSONS  AND  TO REQUIRE VESSEL DEALERS TO PROCURE AND FILE A
11        BOND; AMENDING CHAPTER 70, TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW
12        SECTION  67-7040, IDAHO CODE, TO PROVIDE APPLICATION OF THE VESSEL TITLING
13        ACT TO CERTAIN VESSELS; AMENDING CHAPTER 70, TITLE 67, IDAHO CODE, BY  THE
14        ADDITION OF A NEW SECTION 67-7041, IDAHO CODE, TO PROVIDE FOR TREATMENT OF
15        LIENS AND ENCUMBRANCES ON VESSELS; AND PROVIDING AN EFFECTIVE DATE.

16    Be It Enacted by the Legislature of the State of Idaho:

17        SECTION  1.  That  Section  49-123, Idaho Code, be, and the same is hereby
18    amended to read as follows:

19        49-123.  DEFINITIONS -- V.
20        (1)  "Variable load suspension axle" means an axle or  axles  designed  to
21    support  a part of the vehicle and load and which can be regulated to vary the
22    amount of load supported by such an axle or axles and which can be deployed or
23    lifted by the operator of the vehicle. See also section 49-117, Idaho Code.
24        (a)  "Fully raised" means that the variable load suspension axle is in  an
25        elevated  position  preventing the tires on such axle from having any con-
26        tact with the roadway.
27        (b)  "Fully deployed" means that the variable load suspension axle is sup-
28        porting a portion of the weight of the loaded vehicle as controlled by the
29        preset pressure regulator valve.
30        (2)  "Vehicle" means:
31        (a)  General. Every device in, upon, or by which any person or property is
32        or may be transported or drawn upon  a  highway,  excepting  devices  used
33        exclusively upon stationary rails or tracks.
34        (b)  Authorized  emergency  vehicle. Vehicles operated by any fire depart-
35        ment or law enforcement agency of the state of Idaho or any political sub-
36        division of the state, ambulances, vehicles belonging to personnel of vol-
37        untary fire departments while in  performance  of  official  duties  only,
38        vehicles belonging to, or operated by EMS personnel certified or otherwise
39        recognized by the EMS bureau of the Idaho department of health and welfare
40        while  in  the performance of emergency medical services, sheriff's search
41        and rescue vehicles which are  under  the  immediate  supervision  of  the
42        county sheriff, wreckers which are engaged in motor vehicle recovery oper-
43        ations  and are blocking part or all of one  (1)  or more lanes


                                      2

 1        of traffic, other emergency vehicles designated by  the  director  of  the
 2        department  of  law enforcement or vehicles authorized by the Idaho trans-
 3        portation board and used in the enforcement of laws specified  in  section
 4        40-510, Idaho Code, pertaining to vehicles of ten thousand (10,000) pounds
 5        or greater.
 6        (c)  Commercial  vehicle  or commercial motor vehicle. For the purposes of
 7        chapter 3 of this title, (driver 's  licenses), a motor vehicle
 8        or combination of motor vehicles designed or used to transport  passengers
 9        or property if the motor vehicle:
10             1.  Has  a  manufacturer's  gross combination weight rating (GCWR) in
11             excess of twenty-six thousand (26,000) pounds inclusive  of  a  towed
12             unit with a manufacturer's gross vehicle weight rating (GVWR) of more
13             than ten thousand (10,000) pounds; or
14             2.  Has a manufacturer's gross vehicle weight rating (GVWR) in excess
15             of twenty-six thousand (26,000) pounds; or
16             3.  Is  designed  to transport sixteen (16) or more people, including
17             the driver; or
18             4.  Is of any size and is used in  the  transportation  of  materials
19             found  to  be  hazardous  for  the purposes of the hazardous material
20             transportation  act  and  which  require  the  motor  vehicle  to  be
21             placarded under the hazardous materials regulations (49 CFR part 172,
22             subpart F).
23        For the purposes of chapter 4 ,    of  this    title
24          49,  Idaho  Code,  (motor vehicle registration), a vehicle or
25        combination of vehicles of a type used or maintained for  the  transporta-
26        tion of persons for hire, compensation or profit, or the transportation of
27        property  for  the  owner  of  the  vehicle, or for hire, compensation, or
28        profit, and  shall  include  fixed  load  specially  constructed  vehicles
29        exceeding  the  limits  imposed  by  chapter 10, title 49, Idaho Code, and
30        including drilling rigs, construction, drilling and  wrecker  cranes,  log
31        jammers,  log loaders, and similar vehicles which are normally operated in
32        an overweight or oversize condition or both, but shall not  include  those
33        vehicles  registered  pursuant to sections 49-402 and 49-402A, Idaho Code,
34        or exempted by section 49-426, Idaho Code.  A  motor  vehicle  used  in  a
35        ridesharing arrangement that has a seating capacity for not more than fif-
36        teen  (15) persons, including the driver, shall not be a "commercial vehi-
37        cle" under the provisions of this title  relating  to  equipment  require-
38        ments, rules of the road, or registration.
39        (d)  Farm  vehicle. A vehicle or combination of vehicles owned by a farmer
40        or rancher, which are operated over public highways, and used  exclusively
41        to transport unprocessed agricultural, dairy or livestock products raised,
42        owned and grown by the owner of the vehicle to market or place of storage;
43        and  shall  include  the  transportation  by  the farmer or rancher of any
44        equipment, supplies or products purchased by that farmer  or  rancher  for
45        his  own  use,  and used in the farming or ranching operation or used by a
46        farmer partly in transporting agricultural products or livestock from  the
47        farm  of  another farmer that were originally grown or raised on the farm,
48        or when used partly  in  transporting  agricultural  supplies,  equipment,
49        materials  or  livestock to the farm of another farmer for use or consump-
50        tion on the farm but not transported for hire, and shall not include vehi-
51        cles of husbandry or vehicles registered pursuant to sections  49-402  and
52        49-402A, Idaho Code.
53        (e)  Foreign  vehicle.  Every  vehicle of a type required to be registered
54        under the provisions of this title brought into this  state  from  another
55        state,  territory or country other than in the ordinary course of business


                                      3

 1        by or through a manufacturer or dealer and not registered in this state.
 2        (f)  Glider kit vehicle. Every large truck manufactured from a  kit  manu-
 3        factured  by a manufacturer of large trucks which consists of a frame, cab
 4        complete with wiring, instruments, fenders and hood and  front  axles  and
 5        wheels.  The "glider kit" is made into a complete assembly by the addition
 6        of the engine, transmission, rear axles, wheels and tires.
 7        (g)  Motor vehicle. Every vehicle which is self-propelled and every  vehi-
 8        cle    which is propelled by electric power obtained from overhead trolley
 9        wires but not operated upon rails, except vehicles moved solely  by  human
10        power and motorized wheelchairs.
11        (h)  Multipurpose  passenger  vehicle  (MPV).  For the purposes of section
12        49-966, Idaho Code, a motor vehicle designed to carry ten  (10)  or  fewer
13        persons  which  is  constructed  either on a truck chassis or with special
14        features for occasional off-road operation.
15        (i)  Noncommercial vehicle. For the purposes of chapter  4  ,  
16          of  this    title  49, Idaho Code , (motor vehicle
17        registration), a noncommercial vehicle shall not  include  those  vehicles
18        required  to  be registered under sections 49-402 and 49-402A, Idaho Code,
19        and means all other vehicles or combinations of  vehicles  which  are  not
20        commercial  vehicles  or  farm  vehicles, but shall include motor homes. A
21        noncommercial vehicle shall include those vehicles having a combined gross
22        weight not in excess of sixty thousand (60,000) pounds and  not  held  out
23        for  hire,  used  for  purposes related to private use and not used in the
24        furtherance of a business or occupation for compensation or profit or  for
25        transporting goods for other than the owner.
26        (j)  Passenger  car.  For  the  purposes  of section 49-966, Idaho Code, a
27        motor vehicle, except a  multipurpose  passenger  vehicle,  motorcycle  or
28        trailer, designed to carry ten (10) or fewer persons.
29        (k)  Reconstructed  or  repaired  vehicle.   Every  vehicle  that has been
30        rebuilt or repaired using like make and model parts and  visually  appears
31        as  a vehicle that was originally constructed under a distinctive manufac-
32        turer. This includes a salvage vehicle which is damaged to the extent that
33        a "reconstructed vehicle" or "repaired vehicle"  brand  is  required,  and
34        other  vehicles which have been reconstructed by the use of a kit designed
35        to be used to construct an exact replica of a vehicle which was previously
36        constructed under a distinctive name, make, model or type by  a  generally
37        recognized  manufacturer of vehicles. A glider kit vehicle is not a recon-
38        structed vehicle.
39        (l)  Salvage vehicle. Any vehicle for which a salvage certificate, salvage
40        bill of sale or other documentation showing evidence that the vehicle  has
41        been  declared  salvage  or  which has been damaged to the extent that the
42        owner, or an insurer, or other person  acting  on  behalf  of  the  owner,
43        determines  that the cost of parts and labor minus the salvage value makes
44        it uneconomical to repair or rebuild. When an insurance company  has  paid
45        money  or  has  made other monetary settlement as compensation for a total
46        loss of any motor vehicle, such motor vehicle shall be considered to be  a
47        salvage vehicle.
48        (m)  Specially constructed vehicle. Every vehicle of a type required to be
49        registered  not  originally  constructed  under  a distinctive name, make,
50        model or type by a generally recognized manufacturer of vehicles  and  not
51        materially  altered  from its original construction and cannot be visually
52        identified as a  vehicle  produced  by  a  particular  manufacturer.  This
53        includes:
54             1.  A vehicle that has been structurally modified so that it does not
55             have  the same appearance as a similar vehicle from the same manufac-


                                      4

 1             turer; or
 2             2.  A vehicle that has been constructed entirely from homemade  parts
 3             and materials not obtained from other vehicles; or
 4             3.  A  vehicle  that  has  been  constructed by using major component
 5             parts from one  (1)  or  more  manufactured  vehicles  and
 6             cannot be identified as a specific make or model; or
 7             4.  A  vehicle  constructed by the use of a custom kit that cannot be
 8             visually identified as a specific make or model.
 9        (n)  Total loss vehicle. Every vehicle that is deemed to  be  uneconomical
10        to repair due to scrapping, dismantling or destruction. A total loss shall
11        occur  when  an  insurance company or any other person pays or makes other
12        monetary settlement to the owner when it is deemed to be  uneconomical  to
13        repair  the  damaged  vehicle.  The compensation for total loss as defined
14        herein shall not include payments by an insurer or other person for  medi-
15        cal  care,  bodily  injury,  vehicle rental or for anything other than the
16        amount paid for the actual damage to the vehicle.
17        (3)  "Vehicle identification  number."  (See  "Identifying  number  "
18    , "  section 49-110, Idaho Code)
19        (4)  "Vehicle  salesman" means any person who, for a salary, commission or
20    compensation of any kind, is employed either directly or indirectly, or  regu-
21    larly or occasionally by any dealer to sell, purchase or exchange, or to nego-
22    tiate  for  the  sale,  purchase or exchange of vehicles. (See also "full-time
23    salesman  "  ,  "    section  49-107,  Idaho  Code,  and
24    "part-time salesman " , "  section 49-117, Idaho Code)
25        (5)   "Vessel." (See section 67-7003, Idaho Code)
26        (6)   "Veteran." (See section 65-509, Idaho Code)
27        ( 6  7 )  "Violation" means a conviction of a misde-
28    meanor charge involving a moving traffic violation, or an admission  or  judi-
29    cial determination of the commission of an infraction involving a moving traf-
30    fic infraction, except bicycle infractions.

31        SECTION  2.  That  Chapter  5,  Title  49, Idaho Code, be, and the same is
32    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
33    known and designated as Section 49-501A, Idaho Code, and to read as follows:

34        49-501A.  APPLICATION  TO  VESSEL TITLING. The procedures provided in this
35    chapter shall apply to all vessel titling programs referenced in  chapter  70,
36    title  67,  Idaho  Code. Any reference to "vehicle" in this chapter shall also
37    mean "vessel."

38        SECTION 3.  That Chapter 70, Title 67, Idaho Code, be,  and  the  same  is
39    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
40    known and designated as Section 67-7039, Idaho Code, and to read as follows:

41        67-7039.  VESSEL TITLING ACT. (1)  Sections 67-7039 through 67-7041, Idaho
42    Code, shall be known and cited as the "Vessel Titling Act."
43        (2)  The Idaho transportation department is hereby  granted  authority  to
44    carry  out  the administration of the provisions of this act and to promulgate
45    rules to effectuate that purpose.
46        (3)  All titling procedures for vessels shall be  governed  by  title  49,
47    Idaho Code. The term "vessel" shall be interchangeable with the term "vehicle"
48    throughout title 49, Idaho Code, for the purposes of vessel titling and vessel
49    dealers and salesmen licensing requirements.
50        (4)  All  vessel  dealers, wholesalers, manufacturers, salesmen, distribu-
51    tors and representatives shall be required to be licensed as required by chap-


                                      5

 1    ter 16, title 49, Idaho Code.
 2        (5)  All vessel dealers shall be required to procure and file  a  bond  in
 3    the amount required in section 49-1608, Idaho Code.

 4        SECTION  4.  That  Chapter  70,  Title 67, Idaho Code, be, and the same is
 5    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
 6    known and designated as Section 67-7040, Idaho Code, and to read as follows:

 7        67-7040.  APPLICATION  TO CERTAIN VESSELS. (1)  The provisions of the ves-
 8    sel titling act shall apply to every 2000 and newer  model  year  vessel  upon
 9    transfer  of  ownership,  and  optionally to all other vessels of a model year
10    prior to 2000, effective on and after January 1,  2000,  even  though  vessels
11    need  not  be  registered  under  the provisions of chapter 4, title 49, Idaho
12    Code. Vessels shall be issued a certificate of  registration  as  provided  in
13    section 67-7008, Idaho Code.
14        (2)  The  provisions  of the vessel titling act shall apply exclusively to
15    vessels with a permanently attached mode of propulsion, such  as:  an  inboard
16    motor,  sail, personal watercraft, or other propelling machinery, and all ves-
17    sels over twelve (12) feet regardless of mode of propulsion, except: rowboats,
18    canoes, kayaks, inflatable vessels, rafts, barges,  nonmotorized  paddle  ves-
19    sels,  sailboards,  tenders, seaplanes, document vessels, and vessels owned by
20    the United States or a foreign state or political subdivision.
21        (3)  Once titled, the vessel remains a titled vessel, and  is  subject  to
22    the requirements of chapter 5, title 49, Idaho Code.

23        SECTION  5.  That  Chapter  70,  Title 67, Idaho Code, be, and the same is
24    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
25    known and designated as Section 67-7041, Idaho Code, and to read as follows:

26        67-7041.  LIENS  AND  ENCUMBRANCES -- FILING -- NOTATION ON CERTIFICATE --
27    CONSTRUCTIVE NOTICE. No lien or encumbrance created on  or  after  January  1,
28    2000, on any vessel titled under the laws of this state, shall be perfected as
29    against  creditors  or  subsequent  purchasers or encumbrancers without notice
30    until the holder of the lien or encumbrance, or his successor or assignee, has
31    complied with the requirements of section 49-504, Idaho Code,  and  has  filed
32    the  title  application  and  all required supporting documents with the Idaho
33    transportation department or an agent of that department.

34        SECTION 6.  This act shall be in full force and effect on and after  Janu-
35    ary 1, 2000.

Statement of Purpose / Fiscal Impact


                          STATEMENT OF PURPOSE

                                RS 08637

PURPOSE

Vessels (boats) in Idaho are required to be registered but are not presently
required to have titles. This legislation will require all new vessels to have a
title issued, a document indicating ownership, the same as motor vehicles.

The purpose is to protect owners from theft or from buying a stolen vessel, to
assist law enforcement in tracking stolen vessels and to help protect the
security interests of banks and other lending institutions.

Compliance will be required for new vessels only after 1999.

                              FISCAL NOTE

Revenue

There are about 5,000 new boats sold each year, and as many as 23,000 to 25,000
title transactions expected for existing boats. Revenue generated from title fees
could be as high as $240,000 per year, depending on the number of individuals
that may optionally choose to title their boats. Eighty to ninety boat dealers
would fall under the dealer licensing requirements with this legislation,
generating about S1 0,000 per year in dealer licensing fees.

Approximated revenue depending on the number of transactions would be:

                       FY99                                     FY2000          FY2001
                 SNA (Titles)                                  $45,000              $90,000         $180,000(& there
                                                                                After)
                 SNA (DLR Licensing)                            10,000              $ 10,000                10,000 "
                    $55,000                                     $l00,000     $ 190,000
                 County Exp. Fund                               15,000              30,000              $ 60,000 " "

An estimated 400 to 600 hours of programming time are needed to prepare systems
for boat titling at an expected one-time cost of $17,200 to $25,800 (500 hours -
$21,500 used in cost estimate.) Two FTE's will be needed, plus program related
operating and capital funds.

               FY99                                    FY2000                     FY2001
         Personnel:                                                              0        $28,280(1FTE) $56,560 (Add'1 FTE)

                     Operating:                       $ 3,150    $ 6,300        $12,600
                     $21,500     $ 500                S500    (One-time)
                     Capital:        0                $ 2,500    $ 2,500
                     Totals    $24,650                $37,580    $72,160

                                          Contact: Senator Evan Frasure
                                          332-1 316


STATEMENT OF PURPOSE/ FISCAL NOTE                S1031